EU-US trade: EU Parliament backs US tariff deal in its Plenary Session
For information!
Following on from our last circular, GN/2026/098 please be informed that the European Parliament gave their final approval to two pieces of legislation implementing EU tariff commitments under the August 2025 EU-US joint statement.
- Sunset clause: tariff preferences set to expire on 31 December 2029, unless renewed
- Clear conditions set on tariff reductions on steel and aluminium derivatives
- Safeguard mechanism to protect EU industry and agricultural sector
The proposal was adopted by 440 votes to 151 with 50 abstentions and eliminates tariffs on all US industrial goods and provides preferential market access for a wide range of US seafood and agricultural goods. The second proposal endorsed by 444 votes to 152 with 54 abstentions, concerns the prolongation of tariff-free imports of lobster, and now also includes processed lobster.
Now approved by the Parliament, the Council’s will need to formally approve the agreed texts. The new legislation will then enter into force on the day after its publication in the EU’s Official Journal.
From the press release:
Sunset clause
The main regulation on industrial and agri-food imports will expire on 31 December 2029. By 30 June 2029, the Commission will make a comprehensive assessment of its trade effects on EU industry, agriculture and small and medium-sized enterprises, and of changes in trade patterns with third countries, accompanied by a legislative proposal to prolong the regulation’s duration, if appropriate.
Steel and aluminium derivatives
In August 2025, the US added 407 product categories to the list of derivative steel and aluminium products subject to tariffs. Parliament considered that these new tariffs increased the level of trade instability and pushed for this issue to be addressed in the main regulation. As a consequence of this, the Commission will now be able to suspend tariff preferences if by 31 December 2026 the US continues to apply a tariff rate higher than 15% on EU steel and aluminium derivatives. The Commission will report to the European Parliament and to the Council, by 1 December 2026, on the tariff treatment of steel and aluminium derivatives.
Strengthened suspension clause
The Commission will also be able to suspend tariff preferences if the United States fails to address the EU’s concerns regarding the tariff treatment of Union exports which until 24 February 2026 benefitted from the 15% all-inclusive tariff ceiling.
Safeguard mechanism
Parliament and Council also agreed to establish a safeguard mechanism should tariff preferences granted to the US lead to increases in imports that threaten to cause serious injury to EU industry, including the agricultural sector. The Commission will be able to start an investigation on its own initiative, or on the basis of information provided by one or more member states or by the European Parliament. The Commission will also report to the Parliament and the Council on a quarterly basis on changes in trade volumes and values of US exports of the goods covered by this legislation.
Full information can be accessed at:
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